What are the highest term deposit rates in the market right now?
If you're thinking about getting a term deposit now is a pretty good time. Interest rates are higher than they've been since 2011, and they've recently started to fall again.
Here are some of the market's highest 6 month term deposit rates:
- 4.95% for 6 months with Judo Bank.
- 5% for 6 months with Illawarra Credit Union
- 5% for 6 months with MyState Bank
- 4.85% for 6 months with Judo Bank
I would like to know if or when the interest rates reach 0 or below 0, what happens to my term deposits in my bank.
This is in relation to my previous question, and probably didn’t ask the right way.
I would basically like to know as a “What if” scenario: If interest rates hit 0 and I have to renew my term deposit of say $20k in 7 days. Is it worth it, or what are my other options or concerns. Its not like I can keep that much money home. Interest rates keep going down and it doesn’t do much for trying to save, it seems the only people are benefiting are the ones spending money, not saving.
Hi Elizabeth,
Thanks for your question.
Assuming that interest rates hit zero and you were about to renew your term deposit, it is likely that you’ll get a rate that is close to zero.
For this reason, if it does happen, you may want to consider investment alternatives, like shares, managed funds, bonds, etc
If you would like to discuss your personal situation, we recommend that you speak to a financial adviser.
Hi Elizabeth,
As term deposit rates are generally fixed, your term deposit rate will remain the same even during the fixed period if interest rates reach 0. You can refer to our RBA cash rate page to keep up with ongoing announcements.
Cheers,
Clarizza
I have $56,000 to put in a term deposit .. Looking for the best rate
Hi Maggie,
Thanks for your question.
The best rate will actually depend on how long you intend to invest for. Please indicate the number of month in the table above and sort by “interest earned”.